Wednesday, October 28, 2015

Mesothelioma Asbestos Exposure Lawsuit By Victims Family Nets $3.5 Million

The family of a mesothelioma victim is awarded $3.5 million in a recent asbestos lung cancer lawsuit.

Plaintiff Barbara B. contracted mesothelioma from second-hand exposure to asbestos allegedly caused by washing her husband’s work clothes. Barbara claimed she would regularly wash his clothes for his next shift at Brown’s Ferry Nuclear Plant in Limestone County.

She was diagnosed with mesothelioma in 2011 and claimed that it had been directly caused by the asbestos fibers on her husband’s clothes. The plaintiff’s husband died from asbestosis in 1997, while Barbara died from mesothelioma on Sept. 7, 2013.

Before her death, Barbara filed an asbestos mesothelioma lawsuit against Tennessee Valley Authority (TVA) which was then carried out by her daughters after her demise.

According to the mesothelioma lawsuit, TVA should have provided James B., the decedent’s husband, proper safety equipment and protection masks when working with the hazardous material.

Additionally, the asbestos lung cancer lawsuit claims that TVA should have warned employees of the possible health risks associated with working with the cheap material.

The presiding judge agreed with the allegations and awarded the decedent’s family $3.5 million judgment against TVA, which owns and operates Brown’s Ferry. 

One of the most prominent problems plaguing elderly citizens in America is contending with the long-term consequences of asbestos exposure. In particular, it is estimated that 4,800 people die from asbestos lung cancer per year in the United States, which represents 4 percent of all fatalities in the country related to lung cancer.

Since the late 1800s, manufacturing companies have used asbestos for construction and insulation purposes. It was cheap and easy to use and soon become a popular construction material for its fire and chemical resistant qualities. While it is harmless in a dormant state, problems start arising when the asbestos sites are disturbed, which are then released.

After experts had officially linked asbestos exposure to lung cancer in the 1940s, the Occupational Safety and Health Administration (OSHA) proclaimed that asbestos lung cancer was a prominent risk to workers who were exposed to asbestos.  Asbestos lung cancer attacks the mucus lining of the lungs rather than the actual organs, this condition is typically diagnosed at a latent stage due to how long it takes symptoms to show. 

Asbestos lung cancer can take years for victims to experience any symptoms leaving few treatment options and short life survival expectancies for patients. Experts warn that it can take up to 50 years before any signs of asbestos cancer to show, as the fibers can sit generations in the lungs before festering.

 

Saturday, October 24, 2015

Lumber Liquidators Guilty Plea Costs Them $13 Million

According to the Department of Justice-Virginia-based hardwood flooring retailer Lumber Liquidators Inc. pleaded guilty today in federal court in Norfolk, Virginia, to environmental crimes related to its illegal importation of hardwood flooring, much of which was manufactured in China from timber that had been illegally logged in far eastern Russia, in the habitat of the last remaining Siberian tigers and Amur leopards in the world, announced the Department of Justice.

Lumber Liquidators was charged earlier this month in the Eastern District of Virginia with one felony count of importing goods through false statements and four misdemeanor violations of the Lacey Act, which makes it a crime to import timber that was taken in violation of the laws of a foreign country and to transport falsely-labeled timber across international borders into the United States.  The charges describe Lumber Liquidators’ use of timber that was illegally logged in Far East Russia.  This is the first felony conviction related to the import or use of illegal timber and the largest criminal fine ever under the Lacey Act.

“Lumber Liquidators’ race to profit resulted in the plundering of forests and wildlife habitat that, if continued, could spell the end of the Siberian tiger,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “Lumber Liquidators knew it had a duty to follow the law, and instead it flouted the letter and spirit of the Lacey Act, ignoring its own red flags that its products likely came from illegally harvested timber, all at the expense of law abiding competitors. Under this plea agreement, Lumber Liquidators will pay a multi-million dollar penalty, forfeit millions in assets, and must adhere to a rigorous compliance program.  We hope this sends a strong message that we will not tolerate such abuses of U.S. laws that protect and preserve the world’s endangered plant and animal species.”

According to a joint statement of facts filed with the court, from 2010 to 2013, Lumber Liquidators repeatedly failed to follow its own internal procedures and failed to take action on self-identified “red flags.”  Those red flags included imports from high risk countries, imports of high risk species, imports from suppliers who were unable to provide documentation of legal harvest and imports from suppliers who provided false information about their products.  Despite internal warnings of risk and non-compliance, very little changed at Lumber Liquidators.

On other occasions, Lumber Liquidators falsely reported the species or harvest country of timber when it was imported into the United States.  In 2013, Lumber Liquidators imported Mongolian oak from Far East Russia which it declared to be Welsh oak and imported merpauh from Myanmar which it declared to be mahogany from Indonesia. 

The illegal cutting of Mongolian oak in far eastern Russia is of particular concern because those forests are home to the last 450 wild Siberian tigers, Panthera tigris altaica.  Illegal logging is considered the primary risk to the tigers’ survival, because they are dependent on intact forests for hunting and because Mongolian oak acorns are a chief food source for the tigers’ prey species.  Mongolian oak forests are also home to the highly endangered Amur leopard Panthera pardus orientalis, of which fewer than 50 remain in the wild.  In June 2014, in response to illegal logging and the decline in tiger populations, Mongolian oak was added to the Convention on the International Trade in Endangered Species.

Under the plea agreement, Lumber Liquidators will pay $13.15 million, including $7.8 million in criminal fines, $969,175 in criminal forfeiture and more than $1.23 million in community service payments.  Lumber Liquidators has also agreed to a five year term of organizational probation and mandatory implementation of a government-approved environmental compliance plan and independent audits.  In addition, the company will pay more than $3.15 million in cash through a related civil forfeiture.  The more than $13.15 million dollar penalty is the largest financial penalty for timber trafficking under the Lacey Act and one of the largest Lacey Act penalties ever.  The company is scheduled to be sentenced on Feb. 1, 2016.

 

Wednesday, October 21, 2015

Sears and Whirlpool Settle Dangerous Dishwasher Claims

According to The Jere Beasley Report Sears Holdings Corp. and Whirlpool Corp. have agreed to pay for repairs and post public warnings to settle a class action accusing the companies of hiding a defective circuit board that caused name-brand dishwashers to burst into flames.

The full estimated value of the proposed hasn’t been made public, but the companies agreed to pay out about $200 apiece to owners of Kenmore, KitchenAid and Whirlpool home dishwashers to cover repairs or rebates to use toward buying a new dishwasher. The parties have also proposed an arrangement in which the Defendants would also pay for repairs of dishwashers that aren’t part of the class but still had fire problems. Some customers can have the full cost of their repairs covered, according to the proposal.

The Plaintiffs filed suit in November 2011 saying that the Defendants knew, or were reckless in not knowing, that certain household dishwashers contained defective electronic control boards that spontaneously overheated, which caused them and other components in the dishwashers to melt, emit smoke and fumes, and combust.

The 10 named Plaintiffs – residents of California, Maryland, Georgia, New Jersey and Massachusetts – all purchased Kenmore, KitchenAid or Whirlpool dishwashers for their homes from 2002 to 2007 that subsequently malfunctioned due to a defective circuit board.

In the case of California residents David and Bach-Tuyet Brown, their KitchenAid dishwasher overheated while they were sleeping in April 2010, filling the house with smoke and causing them to spend $70,000 to replace the entire kitchen and to lose an additional $3,000 in rental income as a result of having to vacate the property for three weeks, according to their complaint.

The proposed settlement calls for different answers to different Plaintiffs, according to the filing. For example, people who have already had to repair or replace a dishwasher that caught on fire will get $200 minimum, but if they kept documentation of the costs of repairs they can ask for more, according to the proposed settlement.

Sunday, October 18, 2015

Tuomey Healthcare Settles Violations for $237 Million

The Department of Justice announced that it has resolved a $237 million judgment against Tuomey Healthcare System for illegally billing the Medicare program for services referred by physicians with whom the hospital had improper financial relationships.  Under the terms of the settlement agreement, the United States will receive $72.4 million and Tuomey, based in Sumter, South Carolina, will be sold to Palmetto Health, a multi-hospital healthcare system based in Columbia, South Carolina.

The judgment against Tuomey related to violations of the Stark Law, a statute that prohibits hospitals from billing Medicare for certain services (including inpatient and outpatient hospital care) that have been referred by physicians with whom the hospital has an improper financial relationship.  The Stark Law includes exceptions for many common hospital-physician arrangements, but generally requires that any payments that a hospital makes to a referring physician be at fair market value for the physician’s actual services, and not take into account the volume or value of the physician’s referrals to the hospital.

The government argued in this case that Tuomey, fearing that it could lose lucrative outpatient procedure referrals to a new freestanding surgery center, entered into contracts with 19 specialist physicians that required the physicians to refer their outpatient procedures to Tuomey and, in exchange, paid them compensation that far exceeded fair market value and included part of the money Tuomey received from Medicare for the referred procedures.  The government argued that Tuomey ignored and suppressed warnings from one of its attorneys that the physician contracts were “risky” and raised “red flags.”

On May 8, 2013, after a month-long trial, a South Carolina jury determined that the contracts violated the Stark Law.  The jury also concluded that Tuomey had filed more than 21,000 false claims with Medicare.  On Oct. 2, 2013, the trial court entered a judgment under the False Claims Act in favor of the United States for more than $237 million.  The United States Court of Appeals for the Fourth Circuit affirmed the judgment on July 2, 2015. 

The case came from a lawsuit filed on Oct. 4, 2005, by Dr. Michael K. Drakeford, an orthopedic surgeon who was offered, but refused to sign, one of the illegal contracts.  The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.  The act allows the government to intervene and take over the action, as it did in this case.  Dr. Drakeford will receive approximately $18.1 million under the settlement.

As part of the settlement, Tuomey will be required to retain an independent review organization to monitor any arrangements it makes with physicians or other sources of referrals for the duration of the five-year Corporate Integrity Agreement.

Thursday, October 15, 2015

QLasers False Claims Verified

A permanent injunction has been granted to the Food and Drug Administration (FDA) against Robert “Larry” Lytle, doing business as QLasers PMA and 2035 PMA based on evidence of false and misleading claims regarding the health benefits of these lasers, which in some cases, reportedly cause health problems.

According to the complaint for injunction filed by the Department of Justice on behalf of the FDA, Lytle has been manufacturing and distributing QLaser devices for more than a decade and markets the devices through private membership associations. Lytle and his businesses promote the devices with false and misleading claims that they treat cancer, cardiac arrest, HIV/AIDS, diseases and disorders of the eye and ear, venereal disease, diabetes and many other health conditions.

Although the FDA cleared two of the QLaser devices for providing temporary relief of pain associated with osteoarthritis of the hand (as diagnosed by a physician or other licensed medical professional), the FDA has not cleared or approved any of the devices to treat any other medical conditions. Further, as demonstrated by the evidence presented at trial, use of the QLaser devices according to the labeling could be dangerous to the health of the consumer.

Sunday, October 11, 2015

PharMerica Corp. to Pay $9.25 Million for Depakote Kickback

According to the Department of Justice the nation’s second-largest nursing home pharmacy, PharMerica Corp., has agreed to pay $9.25 million to resolve allegations that it solicited and received kickbacks from pharmaceutical manufacturer Abbott Laboratories in exchange for promoting the prescription drug Depakote for nursing home patients.  PharMerica is headquartered in Louisville, Kentucky.

“Elderly nursing home residents suffering from dementia have little control over the medications they receive and depend on the unbiased judgment of healthcare professionals for their daily care,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “Kickbacks to entities making drug recommendations compromise their independence and undermine their role in protecting nursing home residents from the use of unnecessary drugs.”

Nursing homes rely on consultant pharmacists, such as those employed by PharMerica, to review their residents’ medical charts at least monthly and make recommendations to their physicians about what drugs should be prescribed for those residents.  The settlement announced today resolves allegations that in exchange for recommending that physicians prescribe Depakote, an anti-epileptic drug manufactured by Abbott, to nursing home residents, PharMerica solicited and received kickbacks from Abbott.  The government alleges that the kickbacks were disguised as rebates, educational grants and other financial support.

In May 2012, the United States, numerous individual states and Abbott entered into a $1.5 billion global civil and criminal resolution that, among other things, resolved Abbott’s liability under the False Claims Act for alleged kickbacks to nursing home pharmacies, including PharMerica.  The settlement announced today resolves PharMerica’s role in that alleged kickback scheme.

Approximately $6.75 million of the settlement will go to the United States, while $2.5 million has been allocated to cover Medicaid program claims by states that elect to participate in the settlement.  The Medicaid program is jointly funded by the federal and state governments.

“Nursing home pharmacies accepting kickbacks from drug makers in exchange for prescribing certain prescription drugs puts vulnerable residents at risk for receiving unnecessary medications, corrupts medical decision making, and inflates health care costs,” said Special Agent in Charge Nick DiGiulio of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG).  “Our agency will continue to root out such corrosive practices from our health care system.”

The settlement partially resolves allegations in two lawsuits filed in federal court in the Western District of Virginia by Richard Spetter and Meredith McCoyd, former Abbott employees.  The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.  The act also allows the government to intervene and take over the action, as it did in part in this case.  As part of today’s resolution, Ms. McCoyd will receive $1 million from the federal share of the settlement amount.

Friday, October 9, 2015

Serenity Hospice and Pallative Care Guilty of Hospice-Medicare Fraud

According to the Phoenix Sun, a Phoenix hospice provider will pay $2.2 Million to the federal government for falsely billing Medicare for hospice care. 


Under the agreed terms, the founder and former president Ruth Siegel agreed to be excluded from Medicare, Medicaid and other federal health programs for 5 years. She will also, personally pay $1 Million of the $2.2 Million settlement

This lawsuit was filed by a former employee Cheryl Sifford, under the false claims act. Serenity still denied the allegations, but said it was more cost effective to settle rather than fight it.

 

Here's how the system works, Medicare pays for medical care to manage symptoms and provide relief to those with a life expectancy of less than 6 months and who have decided not to seek any further treatment, but rather prepare for death. The rate Medicare pays for this service is over 4 times the rate that should have been paid for the actual services they received. Thus boosting profits for the facility.

 

Sifford claimed in a civil lawsuit filed, that Serenity flagged patients who were referred by CareMore to ensure they were admitted as hospice patients. In addition she was also instructed to take CareMore's staff to dinner, concerts and limousine rides.


Siegel has not admitted guilt, but has insisted that this settlement is the quickest and most cost effective settlement.

The whistleblower, Cheryl Sifford will collect $440,000 for her help in this case.

If you know of any such thing taking place where you work we encourage you to contact Jim VanderLinden immediately. http://www.vanderlindenlaw.com/

Wednesday, October 7, 2015

BP Will Be Paying for Many Years for Their Most Recent Accident

BP has agreed to pay a record $20 billion to resolve all federal and state claims against the company over its role in the Deepwater Horizon oil spill.

Under the terms of the finalized deal announced by the Justice Department on Monday, BP won’t have to pay all the money at once. Softening the hit to its cash flow, the company is able to spread out payments over a 15-year period. The last installments are due in 2031, more than 21 years after the Deepwater Horizon disaster, which killed 11 crew members and caused the largest oil spill in U.S. waters.

The two biggest pieces of the settlement* are the $5.5 billion in Clean Water Act penalties and the $7.1 billion that BP agreed to pay to the U.S. and Gulf Coast states to cover long-term environmental damages.

Here are the payment schedules for both categories, according to the consent decree filed in federal court in New Orleans on Monday:

Department of Justice
Department of Justice
 

Attorney General Loretta Lynch called the deal “a strong and fitting response to the worst environmental disaster in U.S. history.” BP officials, as WSJ’s Devlin Barrett notes, have said previously the agreement provides the company, and the Gulf region, “a path to closure,” resolving the largest legal exposure and providing more certainty in terms of costs and payments.

 

* Total settlement figure also includes $1 billion that BP previously committed for early restoration projects; up to $700 million for any later-discovered injuries or losses or to pay for adjustments to restoration projects; $4.9 billion to five Gulf States, plus another $1 billion to localities, to settle economic-damage claims; and $600 million to settle other claims, including reimbursement for response and removal costs.

Saturday, October 3, 2015

Pfizer to pay $400 Million for Off Label Drug Marketing

According to the Jere Beasely Report a New York federal judge has granted final approval of a $400 million settlement that ends a class action accusing Pfizer Inc. of misleading investors about illegal off-label drug marketing. However, some investors may not get very much, with a recovery rate of 15 cents per share. U.S. District Judge Alvin K. Hellerstein had granted early approval of the in mid-March after lawyers revised notices to class members clarifying details about the .

The case, because of the settlement, has now been dismissed with prejudice. The recovery rate of 15 cents per share is far less than the $1.26 per share a damages expert for the Plaintiffs had estimated.

Pfizer put the damage per share at nothing because, the company disclosed a dividend cut to fund its purchase of Wyeth on the day of the January 2009 stock drop that was central to the . Both sides noted in February that if fewer people claim, the recovery for claimants will grow, and institutional investors will be active, claiming most of the potential recovery.

The Plaintiffs filed their in 2010 after Pfizer pled guilty to illegally marketing the anti-inflammatory drug Bextra and reaching a $2.3 billion settlement with the federal government in 2009. Investors alleged that the company misled them about marketing that drug, as well as Godon, Lyrica and Zyvox, and that Pfizer concealed a kickback scheme involving payments to doctors in exchange for promotion of those drugs.